Question

EXCEL 4 - CHAPTER 8 X C T Have The Answers I Just Don X + → C newconnect.mheducation.com/flow/connect.html EXCEL 4 - CHAPTER 8 Saved Help Save & Exit Submit ? X - Sign In FILE HOME Calibri % Calculating NPV and IRR - Excel INSERT PAGE LAYOUT FORMULAS DATA REVIEW VIEW - 11 -A A = U. 3- A Alignment Number Conditional Format as Cell Formatting Table Styles Font Styles * fic B I Cells Editing Skipped Paste Clipboard A1 eBook 1 A project that provides annual cash flows of $15,400 for nine years costs $67,000 today. What is the NPV if the required return is 8 percent? What if it's 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting $ 15,400 Annual cash flows # of years Costs Required Return Required Return 67,000 8% 20% Complete the following analysis. Do not hard code values in your calculations. You must use the built-in Excel function to answer this question. Graw < Prey 1 of 6 Next >
I have the answers I just don't know how to input the answers into a formula in the excel solver so that it can accept my answers. Thank you.

Answer 1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

A B C D E F $ 15,400 Annual Cash flows # of years Costs Required return Required return 67,000 8% 20% 14 15 NPV at 8 percent $ 29,202.07 NPV at 20% $ (4,923.12) IRR 17.67%

Cell reference -

ДА В 15400 Annual Cash flows # of years Costs Required return Required return 67000 0.08 0.2 NPV at 8 percent =PV(D9,D7,-D6,,0)-D8 NPV at 20% =PV(D10,D7,-D6,,0)-D8 IRR =RATE(D7,-D6, D8,,0)

Hope this will help, please do comment if you need any further explanation. Your feedback would be highly appreciated.